What is Auction in Share Market ?
An auction market is a market in which buyers enter competitive bids, and sellers enter competitive offers at the same time. The price at which a stock is traded represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to sell. Matching bids and offers are then paired together, and the orders are executed.
The unsold right shares are kept for auction where an investor can invest and apply for certain number of units of shares. If the applied price is below the cut-off price the investor will get the share otherwise not.